Extending losses for the second straight session, Indian rupee ended lower against the US dollar on Thursday due to fresh demand for the American currency from banks and importers. Local currency was unable to get any support with Finance Minister Arun Jaitley’s statement that India’s GDP can grow by 7-8 percent if the global economy picks up. He also said the government is hopeful of implementing from July 1 the Goods and Service Tax (GST) to help check tax evasion. Besides, dollar’s strength against some other currencies overseas weighed, but a firm domestic equity market cushioned the impact. On the global front, euro declined against dollar on Thursday, as investors became cautious ahead of the upcoming healthcare vote in the U.S. House of Representatives, which is a major test of the President's legislative ability to deliver his pro-growth plans.
Finally, the rupee ended at 65.53, 9 paise weaker from its previous close of 65.44 on Wednesday. The currency touched a high and low of 65.57 and 65.38 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.42 and for Euro stood at 70.66 on March 23, 2017. While the RBI’s reference rate for the Yen stood at 58.81, the reference rate for the Great Britain Pound (GBP) stood at 81.84.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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